A large number of modern-day organizations resort to sourcing activities to reduce their production costs. If the manufacturing costs are lowered, the prices of goods and services will also be lowered. This will enable marketers to sell their products and services at comparatively lower prices than their competitors. Vietnam has emerged as a sourcing hotspot in recent times. The reasons for this are obvious. Easy availability of raw materials, cheap labor charges, skilled workforce, excellent infrastructure, and favorable trade policies of the Vietnamese government are some of the reasons. Organizations can reap increasing benefits from their Vietnam sourcing activities. This is also helping marketers to attain their objectives.
Factors that Make Vietnam a Prime Sourcing Destination
The factors that make Vietnam a prime sourcing destination are listed as follows:
Easy Availability Of Raw Materials:
From conducting procurement operations in Vietnam, marketers can easily get access to a vast pool of natural resources. As these resources are found in abundance, the costs of these materials are also not high. This minimizes the manufacturing costs of organizations at large. With the assistance of sourcing agencies, businesses are streamlining their procurement activities in Vietnam.
Low Labor Charges:
This is another factor that sets Vietnam apart from Western nations. The labor charges are lower in this Asian nation when compared to the Western countries. Low labor charges reduce the manufacturing costs of organizations. Needless to say, every marketer wants to get hold of quality products at nominal rates. This is increasingly becoming possible with their Vietnam procurement operations.
This is another major reason for Vietnam being a low-cost country sourcing destination. Unlike most other Asian nations, the Vietnamese workforce is aware of the latest trends in production techniques. They also know how to implement these techniques in their manufacturing operations. A significant portion of the Vietnamese workforce is literate, willing to learn, and trainable. They have a strong work ethic similar to the Western nations. They try to adhere to deadlines under any circumstances. This is particularly helpful for organizations in times of crisis. It has been proved that the Vietnamese workers are far better in protecting intellectual property such as patents and trademarks than most other low-cost countries.
The infrastructure of Vietnam has developed at a phenomenal rate in recent times. Organizations can be assured of guaranteed results in their Vietnam sourcing activities and that too within a stipulated time. Excellent communications and transport systems reduce lead times and thereby, proving to be a boon for the marketers. Marketers can get hold of finished goods within a short period. This is particularly relevant in times of increasing consumer demands.
Favorable Trade Policies:
The Vietnamese government has undertaken several initiatives that are giving the sourcing scenario of Vietnam an added dimension. Modern-day marketers are looking to take advantage of Vietnam’s growing economy.
Conducting sourcing activities in Vietnam is a common practice among organizations nowadays. The above-mentioned factors make Vietnam a low-cost country sourcing destination. Shed your dilemma and conduct your organization’s sourcing activities in Vietnam to boost your sales.
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